I. Summary of the Case
As a group, this case has been based on the point of view of the consultant of the company regarding Philippines Journalists, Inc., which is the publishing company for The Journal Group of Publications, namely: The Journal, People’s Journal, People’s Bagong Taliba, People’s Journal Tonight, Women’s Journal Magazine, and the International Editions thereof. Therefore, the privatization of the said company from the standpoint of the government economic recovery should prioritize over the recovery of hidden shares because of corruption.
II. Statement of the Problem
The recovery of DBP loan exposure which is due to the violations of Anti-Graft and Corruption Practices Act involving Rosario Olivares, PCGG, Benjamin Romualdez and DBP Governors.
To recover the DBP Loan exposure resulting from the capital deficiency and the huge negative book value.
To achieve the privatization of Philippine Journalists, Inc.
IV. Areas of Consideration
• Philippine Journalists, Inc (PJI) is the publishing company for the The Journal Group of Publications that was incorporated on October 20, 1972 with an authorized capital of P500, 000.00, consisting of P5, 000 shares with par value of P100 each.
• At that time of incorporation, the PJI offices located at the Meralco Building in Pasig, Rizal. In 1976, the company transferred its offices to Railroad Street, Port Area, Manila, after subleasing from Beta Realty Corporation a lot known as “Block 173” with building owned by the National Government. Subsequently, it subleased on June 21, 1979 from Capital City Realty Development Corporation another lot, Block 168, also on Railroad Street, Port Area, Manila owned by the National Government.
• On April 21, 1980, Beta Realty Corporation, an affiliate of PJI, transferred or assigned its right and interest on aforesaid “Block 173” to capital City Realty Development Corporation (CCRDC), another affiliate, per “ Contract to...